Peet (PPC) H2 2024 earnings summary

Executive summary

• FY24 delivered solid performance with strong sales in WA, Qld, and SA, offsetting softer results in ACT/NSW and Vic, and operating profit after tax of $36.6 million, down from $70.1 million in FY23.

• Maintained a large, nationally diverse land bank of 33,600 lots, with over 70% under development and expected to rise to 84% in three years.

• Disciplined capital management included a 4% share buy-back, fully franked dividend, and $201m returned to shareholders since FY18.

• Advanced sustainability initiatives with water-efficient communities, affordable housing, and strong community engagement.

• 2,504 lots sold in FY24, up 79% year-over-year, with 2,418 settlements, down 7% from FY23.

Financial highlights

• FY24 net operating profit: $36.6m, down 48% year-over-year; operating EPS: 7.77c, down 47%.

• Revenue: $314.4m, down 14% year-over-year, impacted by prior year one-off settlement in Qld.

• EBITDA: $66.7m, down 38%; EBITDA margin: 21% (down from 29%).

• DPS: 4.25c, down 43%; book NTA per share: $1.31, up 2%.

• Cash and available facility at 30 June 2024: $140m; contracts on hand value: $481.2m.

Outlook and guidance

• Portfolio well-positioned for growth, focusing on high-quality land, expanding product offering, and disciplined capital management.

• Pipeline of 33,600 lots provides medium-term earnings visibility; up to eight new projects to launch FY25–FY27.

• Expectation for earnings growth and strong operating cash flows in FY25, supported by contracts on hand and improving sales activity.

• Gearing expected to trend down in FY25, with material increases in operating cash inflows anticipated.

• On-market share buy-back extended; dividend payout ratio targeted at 50–60%.